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The Right to Disconnect?

By Dustin Steiner, Vice President Government & Industry Relations

Last week, AGC San Diego and California joined several other business associations in opposition to AB 2751. The so-called Employer Communications During Nonworking Hours bill, better known as the “right to disconnect,” would “require a public or private employer to establish a workplace policy that provides employees the right to disconnect from communications from the employer during nonworking hours, except as specified. The bill would define the “right to disconnect” to mean that, except for an emergency or scheduling, as defined, an employee has the right to ignore communications from the employer during nonworking hours. The bill would require nonworking hours to be established by written agreement between an employer and employee.

The California Chamber of Commerce has labeled AB 2751 a "Job Killer." The coalition makes the case that California already has strong laws, including overtime, reporting time pay, meal and rest break premiums, and on-call and standby pay.

Additionally, the chamber's letter points out that the right to disconnect applies to exempt employees stating that “requiring employers to assign those exempt workers “nonworking hours” completely defeats the intent behind being an exempt employee” and further “restrains an employee’s flexibility.” Read their letter here. We will be watching this one closely.

Other bills in the Legislature that we are following closely include:

SB 984 Public Agencies: Project Labor Agreements.

This bill would “require a state agency, by January 1, 2027, to identify and select a minimum of three major state construction projects that are required to be governed by a project labor agreement (PLA)" in the same manner as the Biden mandate of $35M and above. State Senator Wahab, the author, has been taking amendments trying to get support and has limited the application of PLAs to a handful of projects in Corrections, Health/Human Services, Department of Toxic Substances Control (DTSC), and Exposition Park. Despite this, the committee postponed the hearing scheduled for last week. This will continue to be a top priority for us!

AB 2855 PAGA Extension

This bill will be amended to deal with the Private Attorney General Action (PAGA) exemption for construction. We spent much time on this during our legislative committee meeting. The new author will be Assemblyman Tim Grayson (D) with Assemblyman Health Flora (R) as the principal coauthor. AGC has led the charge on this and has other construction associations and labor supporting the exemption extension.

AB 2451 – Prevailing Wages

Assemblywoman Sabrina Cervantes, the author, has decided not to proceed with this bill. This bill would “require the director to use the higher rate when rates arise from collective bargaining agreements having overlapping crafts or classifications.” Industry and Labor joined together to oppose this bill.

AB 2439 (Quirk-Silva/IUOE sponsor) and AB 3186 (Petrie-Norris / Painters sponsor):

These bills will require contractors and subs to provide bid documents, contracts/subcontracts, payroll records, and skilled and trained workforce to the Department of Industrial Relations (DIR), Taft-Hartley trust funds, and joint labor-management committees.DIR would set parameters in the documents and contractors and subs would "reasonably" have to provide. AGC is strongly opposed to this Private Records Request effort. AB 3186 is scheduled for a hearing this week. AB 2439 is not yet scheduled for the hearing.

Thank you to The Apex Group, which lobbies on our behalf in Sacramento, for tracking all of this. Do you want to see our industry in action? Join other contractors and march the halls of the Capitol! AGC goes to Sacramento on May 7 and 8! Hope to see you there! Details here: https://www.agc-ca.org/sites/legislative-day-2024/

Let the Games Begin

By Mike McManus, Director of Engineering Construction & Industry Relations

The budget season is officially here. The party in charge here in the San Diego region and in Sacramento is scrambling to avoid cutting some of their favorite programs. Most of the tough decisions have not been made even though the start of the 2024/2025 fiscal year is approaching. Our elected officials are waiting and hoping for better revenue projections. At this point, the state government has a deficit projected at somewhere between $38 billion and $73 billion on a roughly $200 billion general fund. The City of San Diego has a deficit pegged at $200 million on a $2 billion general fund. Given that the economy has been booming, those are ugly pictures. What does it mean for contractors?  

There is much talk about “structural deficits,” not only this year but also in future years, which is a code phrase that avoids discussing the obvious. During the pandemic shutdown, the federal government started printing money and sent the “new money” to state, county, and city governments across the country, to create new social programs and unprecedented levels of national debt. 

States like California and cities like San Diego created new progressive programs to help pay for unemployment benefits, free school lunches for all, new expanded healthcare for the undocumented, and new money for battling homelessness. The list goes on and on. The federal government has turned off the spigot, but the party in charge does not want to cut these programs even though they now don’t have the revenue to pay for them. The city has been spending beyond its means for several years but was able to paper the problem over with the $550 million in pandemic aid they received, but that money has run out. Ongoing expenses at state, county, and city governments are not covered by ongoing revenue. They must cut ongoing programs, raise taxes, or both.

We must ensure that our state, county, and city governments stay within their means, even though we know the budgets we will see in June will be gimmicky. It is an election year, and our elected officials will try to avoid anybody feeling any pain, at least until after the November election.

Meanwhile, the city will plan multiple new taxes on the ballot in November. A one-cent increase in the sales tax is being proposed that could generate $400 million annually. On top of that, a parcel tax, unknown size at this point, has been proposed by the City Council and could generate another $100 million for stormwater projects. Both of those could generate some new construction work. The sales tax money will likely be more used to fund city operations and shore up their pension system rather than fund infrastructure construction.

If you remember Proposition H, approved in 2016, required the City of San Diego to establish an Infrastructure Fund. It requires any increase in city revenues above the rise in the consumer price index to be deposited into a fund restricted to infrastructure projects. In the mayor’s proposed budget, that money is about $20 million. The mayor proposed spending that money on operations and facility maintenance instead of capital improvements as it usually is. He seems to be ignoring the wishes of the voters who overwhelmingly passed Proposition H. Is the proposed $400 million in new sales tax money subject to Proposition H? 

At the state level, it was rumored that Governor Newsom was to raid SB1 road funds. The construction industry is poised to pounce on that if he attempts to “borrow money” and promise to repay later.

The funding for infrastructure projects looks strong for at least a few years at this point.

The city’s budget has some specific new funding for road paving. Next year, the budget calls for an increase of 15 miles of new street paving versus this year, to a total of 60 miles funded at $141 million. That will grow to 75 miles of street paving in 2025 and then regrow to 105 miles in 2026.  

National Work Zone Awareness Week (NWZAW)

This week, April 15-19, is National Work Zone Awareness Week (NWZAW). Each year in the spring, NWZAW is held to bring national attention to motorist and worker safety and mobility issues in work zones. Work Zones are temporary. Actions behind the wheel can last forever.

On Wednesday, April 17, all roadway safety professionals across the country are encouraged to wear orange to show their support of work zone safety. NWZAW and Go Orange Day are especially important to the families of victims who have lost their lives in work zones. Show your support on social media by posting orange pics and using the hashtags #NWZAW and #Orange4Safety. 

Improve Highway Work Zone Safety by Completing the 2024 Highway Work Zone Safety Survey by May 10

AGC and Survey Partner will use Survey Results to Urge Motorists to Be Careful During the Summer Travel Season

AGC of America and survey partner, HCSS, are asking all highway and transportation members to help improve work zone safety by completing this brief survey. AGC of America wants to collect information on the number, severity, impacts, and potential solutions to highway work zone crashes. AGC of Ameria will use the results of this survey for a media and public education campaign the week before Memorial Day to encourage motorists to be more careful in work zones.

Please take a few minutes to complete this important highway work zone safety survey by May 10: https://www.surveymonkey.com/r/PN7WPQK and please do not hesitate to contact Brian Turmail at 703-459-0238 or brian.turmail@agc.org with any questions, comments, or concerns about this survey and plans to use it to promote highway work zone safety.

AGC Provides SDSU Students with Annual Course Field Experience Opportunity

AGC members, Marathon Construction Corporation and RDO Equipment Co., along with the AGC Apprenticeship Program, will host over 60 students at their local Lakeside facilities to operate RDO‑furnished equipment and try out the apprenticeship program's simulators.

This two-hour April 26 field trip comes as part of the CON E 280, Construction Methods class for the SDSU College of Engineering Construction Engineering and Management (CEM) program. Half the allocated time will be spent in the Marathon/RDO yard, while the other will be spent at AGC Headquarters. Fan favorite Hodad’s will be on-site to dish up some local grub.

The CON E 280 course is meant to expose students to six hours of laboratory time to teach the components and methods of construction, namely earthwork; foundations; wood, steel, and concrete construction; roofing and cladding; and interior construction. The lab time is meant to provide students with field experience in conducting or observing construction operations, as well as observing the concepts of production in a construction setting.

Anticipated attendees include SDSU partner companies, multiple members of the AGC Board of Directors, apprenticeship program instructors, AGC staff, and 62 students.

This field trip serves as an opportunity for AGC members to continue to connect with today’s local students and strengthen our ties with the SDSU CEM program. 

Seaside Mixer

Thanks to all who attended the Seaside Mixer! What a fabulous turnout. We hope you networked to your heart's content!

2024

May 16, 2024 - Boy Scouts Lunch-O-Ree honoring Mike Furby - Paradise Point Resort

May 21 - Specialty Contractors Council - Meet Your GC/Cornhole Tournament - AGC HQ Lakeside

June 6, 2024 - Baseball Bash - Padres vs. Diamondbacks - Petco Park

June 24, 2024 - AGC/EGCC Spring Golf - Steele Canyon

July 8-12, 2024 - AGC Blood Drive - AGC Member Hosts

July 26, 2024 - Day at the Races - Del Mar Racetrack

August 9, 2024 - Affiliate Day Golf - Singing Hills Golf Resort - Sycuan

September TBD - Public Agency Showcase - San Diego Yacht Club

October 7, 2024 - AGC Fall Golf - Country Club of Rancho Bernardo

October 17, 2024 - CLC Car Show & Mixer - AGC HQ Lakeside

December 14, 2024 - Holiday Dinner Dance - Hotel Del Coronado

APRIL MEETINGS

April 17 - Port Liaison - 11:45 @ Port office

April 18 - Meetings & Events Committee - Noon @ Lakeside

April 23 - Affiliate Council @ 11:30 a.m. @ Lakeside

April 30 - NAVFAC - 10:15 a.m. @ Lakeside

About Monday Morning Quarterback

AGC San Diego Chapter's Monday Morning Quarterback is a "hot off the press" and to the point Monday morning briefing on the important issues facing San Diego's construction industry. It is prepared by AGC Chief Executive Officer, Eddie Sprecco, and Vice President Government & Industry Relations, Dustin Steiner.

Please contact Eddie Sprecco or Dustin Steiner with your comments, or with information that should be conveyed to the industry through this service. Well over 3,000 individuals employed by AGC member firms are part of this system.

AGC San Diego Chapter, Inc.

The VOICE of Construction

(858) 558-7444

agcsd.org

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